Government passes new ruling over tenancy deposits

These rules require a landlord to pay the tenant’s deposit into an approved deposit scheme and provide that tenant with certain information within a specified time.

The new measures form part of the Deregulation Bill, which is due to soon receive Royal Assent and become law.

In 2013, a Court of Appeal decision in Superstrike v Rodrigues ruled that if a fixed-term tenancy rolled over to later become statutory, it would be treated as a completely new tenancy with the tenancy deposit rules having to be complied with for a second time. Once landlords had missed the time slot for doing this there was, until this amendment, no possibility of correcting their position.

Henry Robinson, President of the CLA, which represents landowners, farmers and rural businesses many of whom let residential property, said: “Once the new law comes into force; there will be no need for the landlord to keep providing the information to the tenant every time the tenancy is renewed and, while all deposits will now have to be protected, there will be an opportunity for landlords to get their house in order without facing significant penalties.”